Skip to main content

tv   Trending Business  Bloomberg  October 18, 2015 9:00pm-11:01pm EDT

9:00 pm
monday, the 19th of october. this is "trending business." i'm rishaad salamat. ♪ rishaad: coming to you live, we're looking at the losing starts on the asian markets for the week, but one bright spot, drinks are around with that officer dealing with signs of stress in gdp data from china, expected to confirm the
9:01 pm
slowdown, the economy growing at its slowest rate since early of 2009. an historic visit, britain rolling out the red carpet for president xi jinping toss first visit. it is announced as being huge. follow me on twitter. don't forget the hash tagged there as well. equities are on their way down. trading positively in the session, investors waiting for key growth numbers out of china that are due in about one hour from now. well, what have we got? >> we are seeing japanese markets really drag down the overall regional benchmark index, which as you said had a great day on friday, reaching a two-month high. concerns about the further exacerbation are really weighing on investor sentiment today. the nikkei is leading the decline in the region, down by 6/10 of 1%.
9:02 pm
malaysia and singapore following new zealand and australia into the red, concerns about a slowdown in china with investors really moving into safe assets. you can see the banks and health-care stocks looking good in the region with quite a lot of selling coming through. industrials are down with basic materials leading the declines in the region. a lot to watch out for today. of course talking about treasury one and australia all morning. 13% higher. paul will have more on that story later. also coming through after completing the institutional offer by 3.5%. japan, following the first-half numbers coming through, quite a big movers, the general theme is coming down. rishaad: 58 minutes ago china released concern over gdp numbers and everyone is expecting those numbers to
9:03 pm
confirm slowdown and show perhaps no signs of ending for the time being. right, let's get a look at this. dave is keeping an eye on the numbers that we need to actually watch. david: before i get to the actual forecast, the council holding the statement of friday saying that achieving growth of "not easy." as long as people have jobs, incomes of our improving, the environment is protected. the median estimate, 31 economists, 6.8%. maybe as high a 6.9%. this one is from amd said. data from august, july, suggesting that there is little
9:04 pm
improvement in economic data. manufacturing was subdued, housing investment has yet to pick up. words, draws would likely be below the 7% flexible target. have a look at this chart here. it presents this new normal in a different way. annual growth going back to 1992. of course, the economy is more than 13 times larger than it was in 1992. other words,t, in is a much bigger increase then say in 1995. of course, this new model of service in the economy just naturally does not give you the same amount of output as the one that was previously investment led. apart from gdp, things coming
9:05 pm
out in september, let me just leave you with this, retail sales, these are median estimates across the 30 economists who have been surveyed. everything comes out roughly speaking 56 minutes from now. rich, back to you. thanks. we will be looking at that story throughout the course of the show. send us your tweets. making headlines out there, let's take a look at some of the ones we're watching for you, not beast which of is jack markell and his spending spree. $1.6 billion -- $1.6 billion has been offered to purchase more of what it doesn't own. they are looking for the attention of internet users. ownership of euro to -- youku
9:06 pm
would deliver it to more of the population, they had 286 million visitors in august, but viewers spent more time watching content on youku. they are zeroing in on u.s. studios for programming. their shares grew 22% in the u.s. on friday, the most in three years. we are following the chinese president, xi jinping, in his visit to the u.k. as they roll out the red carpet. there will be a 41 gun salute, lunch with the queen, lodging at buckingham palace. in the middle of all of that prime minister david cameron will be looking to open up the purse strings and shell out billions of pounds in new investments to help address the lopsided trade relationship that has -- that have left the u.k. lagging behind its peers with china. they are now the second biggest union european trading partner after germany with their biggest
9:07 pm
trade imbalance of the five largest economies. that reflects a relatively weak export for good and services compared to imports from china. the number of deals announced during the trip are reported to be huge. we will watch close it for that. the biggest shakeup in a decade to cut costs and boost earnings. talking about deutsche bank reg out, it's all about the ceo's plan to split the investment bank as he scales back to trading empire built by his predecessor, including the departure of some senior figures. among them the cohead of the high banking trading unit. today the ormer asset wealth management leader takes over in the transition. easing efforts to reshape the bank and rebuild relationships with regulators after a record settlement with u.s. if u.k.
9:08 pm
authorities over the manipulation of interest rate benchmarks. seven years after the financial crisis european global banks are still trying to adapt to hire capital requirements, rock-bottom interest rates and fewer opportunities for growth. some analysts say that these banks have been too optimistic. back to you. rishaad: taking a look at australian treasury mines, 15% in the market, responded to by the u.s. and u.k. premium wine assets. let's get over to sydney to find out what's going on. gainsing is, are these set to be sustainable or is that the hangover? >> did point. 13% this morning is a pretty big spike. yes, questions are now arising over what exactly a fair value is for treasury. let's just say that the next december earnings will be watched pretty carefully and the
9:09 pm
market will get a better feel for what fair price for treasury winds is. for the shareholders who got it when it was announced, the deal was to shares for every 15 shares that you own. that's including the discount on the close last thursday. it's difficult to see how that can deal is going to end badly for them. clark, his, michael strategy for luxury brands is certainly getting vindication from the market today. that's what the deal was all about. high-priced luxury u.s. in u.k. assets for $600 million. it has gone extremely well for treasury. thanks. that's the eye we are keeping on
9:10 pm
treasury winds for the morning. cutbacks on oil rigs, outlook for the oil rollout. now, coming up we are going to get the ubs world management take on the chinese economy ahead of that gdp figure. joining us a bit later on, right after the short rake. we get the nail on the japanese ipo market head of the records with a fixed raise of $12 billion. ♪
9:11 pm
9:12 pm
rishaad: we are back with "trending business." the big pricing in tokyo is set to list in the next few weeks. how lucrative are ipo's in japan ? ntt is the big one, the mother of them all. still holding the rank for sale
9:13 pm
of the century at $2.3 trillion yen. parent,second to their they came out and raised over two dollar trillion in -- over ¥2 trillion. also triedrail, they together to have some of the 1993sizable ipo's between and 2012. they made the equivalent of $5 billion to eight arian dollars. we will have to wait a bit until november 4 just to see japan post on the oil a bit. let's get more on that market with the executive director of lgt capital partners. if it does price at the top it is going to be the biggest ipo in japan since 1987.
9:14 pm
that's quite something. what does that tell us? >> that the process of the market liberalization has been somewhat stalled between recently and 1997. they tried to kickstart it in the early 2000's under the prime thester, which is when whole plan began, but it has stalled a bit in between and i think that's a good one. rishaad: why did install? -- why did it stall? lack of political will? or people not subscribing? quite that was in the middle of the 2000. they would not have had a problem if they had wanted to go ahead with the sale at the time. it was more political to stall it. still, ok, you had something to sell -- something to sell at this stage.
9:15 pm
there are not so many state-controlled enterprises anymore in japan. rishaad: most of these companies did all of this in the 80's and 90's. >> absolutely. i believe in the 80's it was another conservative prime minister, founded there with ntt and the rail companies and now it has come full circle. rishaad: they certainly could do with the money for the balance sheet. >> absolutely. signal is opening more important than the actual pay down debt. that is also out there, but i don't think it's that significant. something is going on here. what about the rest of the reform program that's on the table? the recordn on saying that there is no third out.
9:16 pm
by definition come if you are looking for big, moment defining reform it -- you will be disappointed. but accurate -- acupuncture works over the medium to long-term and i think they are being assisted. for another needle one, they are continuing with their agenda quite persistently, albeit gradually, but i think that is the right way for japan. rishaad: have you seen signs that they are getting the corporate side of things in order? we have had this series of scandals. do you think that by leadership here there is a corollary to economics with an argument on the one hand that while these scandals observe something very , the in the core of japan other side of it is that they are coming clean out, which is to be applauded? >> absolutely. there are always two sides to the same coin. regarding corporate culture, as
9:17 pm
the word implies a lot of it is culture and that takes a lot of time to fix. or gradually change. certainly it is good that the government is taking sides in trying to promote better governance and more transparency and inclusiveness, not only in terms of shareholder value in general but also, in general, economics. certainly that's a good thing. rishaad: what do you make of it all, fair market wise? >> very generally i think we are probably through the year of consolidation and correction call much rooted by the chinese selloff in the asian markets. then we rather botched r&b regime change. i think that these concerns are going away. gdp figures today, i don't think that they should be scary whatever the result will be. regardless china has launched the price globally, so we should
9:18 pm
have at least in the short term a very good outlet for asia in the short term with global equities in general. japan is going to be great. [laughter] late swings in the market, momentum going on, there has been moving to the downside that's been exacerbated and vice versa. the atf's been blamed for this. what he make of that? >> it is significant in terms of market functioning and you would not want things like that to , developed large market, but i think -- i hope they will fix it as soon as possible in terms of improving thatdity and making sure things like that don't happen, but otherwise it's a technical issue rather than a macroeconomic issue on the market. so, that's a temporary concern. rishaad: thank you very much.
9:19 pm
>> at least three people were killed and thousands more displaced when a typhoon hit the philippines. died when hisboy family home collapsed. two people drive -- drowned in another province. maximum winds were put down at 85 miles per hour, wind gusts over 100. thousands of airline passengers were stranded. school has been closed in central manila. the japanese prime minister has reduced the navy and vowed to rewrite the constitution and allow japanese forces to serve abroad, prompting criticism from china, korea and others. populistso led to protests at home. they say it gives them the ability to work with other
9:20 pm
allies and help in international peacekeeping operations. asian defense officials have warned the west to keep its nose out of regional affairs. a three-day security forum in beijing included speeches saying that western interference in the south china sea would be the worst scenario possible. the pentagon has said that they do have the freedom to sail in international waters. china is gaining increasing control of these disputed islands. up next, star wars fans are enjoying a new trailer this monday, tickets going on sale today. we have got the details when we return. ♪
9:21 pm
9:22 pm
9:23 pm
♪ swing,: getting to full the earnings season in the u.s.. over 100 companies set to deliver results. we have this from the york. >> the week ahead on wall street poses a key question, can the october rebound in u.s. stocks continue? we're about to get into the peak of earnings season with over 100 companies set to report and investors care -- carefully weighing the health of corporate america. our boeing, include
9:24 pm
credit squeeze, gm, and microsoft among others. right now analyst forecasts on the whole are that they fell 6.7 percent in the quarter while revenue fell 3.8%. one strategist says that he would give the earnings season so far a c plus. leading withs are significantly lower expectations. key economic boards updating on the economy include the sales of previously owned homes that economists say right bloomberg probably rose in september, the fourth advance the past five months. we also have housing construction data coming at us that probably climbed in september for the first time in three months. new york, su keenan. those are some of the stories making headlines out there. makerese mobile phone
9:25 pm
replacing pepsico as the premier sponsor of the cricket league. there are no details over how much cash is involved in all of this. executives were expected to pay $62 million as title sponsor's from 4013 to 2017. the children -- a child's horror movie hit the top of the box office over the weekend. "goosebumps," taking in $23.5 million in the u.s. and canada. steven spielberg's first movie in years, "bridge of spies." netflix three at circle feature, "pieced of nolenation." bookebumps is based on the of the same name, having sold 400 million copies worldwide. star wars fans, prepare for the next chance to visit a galaxy far, far away. disney confirming tickets to go
9:26 pm
on sale around the world on tuesday. sales start after the studio released a new trailer for "the force awakens" on monday night. disney has also released the official poster for the film. the film does that even open until december. all right, coming up next, all the presidents men, britain rolling out the red carpet as xi jinping comes to town. we have got hong kong and shy and -- shanghai getting underway. getting up with our eyes taking a look at how much china has grown, 6.8%? we find out in just over 30 minutes from now. ♪
9:27 pm
9:28 pm
9:29 pm
rishaad: one bright spot, treasuries
9:30 pm
jumping to a one-year high in sydney. buying most of the u.s. and u.k. wine assets. stop leading as much as 14% after a trading halt. japan's biggest privatization since 1987 is moving forward with the banking and insurance units. the three-pronged ipo could raise $12 billion and overwhelming demand from insuranceas they post five times oversubscribed. the trading day to come online here in hong kong and shanghai. investors awaiting those growth numbers. here is juliet. we are seeing the china and hong kong markets open a little higher although china has slipped into the red. you mentioned, a lot economists expecting this is going to exacerbate the china
9:31 pm
slowdown story. we have seen investors bailout of a lot of the so-called risky assets, the ringgit, the aussie dollar. i nikkei of 2.25, down by about 1%. tgere -- the weakest they are down by almost 9%. we are seeing a number of the mining players lead to the market lower. evolution mining, they are down by more than 70 -- down by more than 7%. we are watching the currencies because that is where we are seeing weakness ahead of this china data. flat to the safe haven yen. the yet is stronger. -- leanne is stronger. let's get over to
9:32 pm
beijing and bloomberg news chief asia economist tom holick. tom: the consensus forecast is for a 6.8 per -- 6.8% year on year growth rate in the third quarter, down from 7% in the second. that weakness reflects a number of factors. firstly, continuing weakness in property and exports, the two main drivers of china's growth. week, buthalf, it was that was offset by the booming equity market. of course, one of the main stories in the third quarter has been the slump in the equity market. what that means is, the financial market won't provide the offsets, the weakness in real estate and exports they did in the first half. rishaad: a lot of questions
9:33 pm
about reliability here, aren't there? troddenre is a well debate about the reliability of china's economic data. you can find analysts claiming that china's gdp growth is anywhere from 0% to 7%. i argued that many of the alternative proxies that people use for tracking china's growth, things like electricity, steel, cement production, they are interesting but they tell us a lot more about what is going on in heavy industry than a tell us about what is going on in the economy as a whole. look at otheru proxies like tax revenue, which should grow broadly in line with the economy as a whole, they are telling a similar story to the official gdp numbers. rishaad: what does this mean for policy as we go toward the end of the year?
9:34 pm
the government has already thrown an enormous amount of stimulus at the economy. we have had five interest rate cuts, multiple liquidity injections, 3 trillion yuan debt swaps for heavily indebted to local governments. our view is that this will pass through into stabilization in the months ahead. we are already seeing stabilization in the credit figures and we think, because -- shouldes have such help stabilize gdp in the fourth quarter and into 2016. we think that means the government should be in a watching and waiting mode. in fact, credit growth -- get credit growth doesn't start feeding through into the economy, we will see another cuts of rates in the fourth quarter. tohaad: britain preparing
9:35 pm
pull out the red carpet for china's president xi jinping this week. a number of deals expected to be announced during this five day trip, including a nuclear pack that will -- a nuclear pact. hoping for while he is there. >> president xi jinping's british hosts were laying on some letters hospitality. china's leader will dine with the queen at buckingham palace, address the houses of parliament , and even take a ride in a roaracle carriage. -- a royal carriage. china currently invests 25 billion pounds in the u.k.. britain one effective at 100 billion by 2025. at the top of their list is a 2 billion pounds investment at the hinkley point power plants.
9:36 pm
a 1.2 billion pound investment in 10,000 new homes in the north of the country. julie is sentker to be looking for further could be thend first market for chinese debt issued in renminbi. ashaad: again, let's have look at this trip in a bit more detail. --re is bloomberg knowing bloomberg asia government corresponded at-large david tweed. david: i just thinking about what happened in 2013 when david cameron met the dalai lama. it happens to u.k.-china relationship after that? what has happened two years later, it has completely reversed itself.
9:37 pm
when you think about it, the u.k. to itself a lot of damage economically. u.k. has the biggest trade deficit with china of any of its five big european union peers. look at exports from the u.k. into china. 5% of british exports go there compared with 12% from germany. that is actually a reflection of the decline of the u.k. manufacturing industry and the fact that germany does make things that china wants. capital goods, machine tools, all the rest of it. britain wants to refine this relationship and they are bending over backwards. they are saying like -- they are saying things like, we want to be china's best friend in the west. xi jinping was interviewed in reuters saying that that comment is a strategically good decision for britain's long-term interests. does -- how
9:38 pm
david: the u.k. is going to get the deals out of it. they also wanted to push the northwestern part of the u.k.. it is not just for the football, this is also strategically important. they want that investment. six times as much money goes from the u.k. into china as from china into the u.k.. that is something that david cameron is acutely aware of. nuclear power station for instance, many people said it was a white elephant because it is going to be one of the most expensive such projects in the world. david: there are certainly valid criticism about the expense, but i think you have to look at the wider issue. u.k. manufacturing. why is u.k. manufacturing so isk? one of the reasons
9:39 pm
concerns about the reliability of energy supply. if you have reliable energy supply, that might be good for u.k. manufacturing. it is not just demand driven, it is also supply driven. rishaad: thank you very much, indeed. we will check on some of the other stories we are following for you. back to china. acing calls to bring back weapon to fight bad loans is considered too risky now. it would help lenders move troubled credit off their books. they are exploring the option as rising -- as sliding corporate profits. the lawsuit against more than 1000 unidentified people yelp says is posted fake reviews on its website. --y say it was offered on
9:40 pm
online for five dollars. severald suit -- sued websites. the quality of air in singapore has worsened today with more hotspots detected from indonesia forest fires on sunday. the index reached 136 this morning, at the lower end of the unhealthy range. it had 183 earlier. conditions are expected to persist through monday. malaysia's prime minister may face new pressure of a multimillion dollar funding scandal with the opposition issuing a no-confidence vote went parliament resumes today. he is ready to present what he calls a difficult annual budget. what are the critics main concerns and why do they want this photo no-confidence now --
9:41 pm
this vote of no-confidence now? >> what the critics has been saying is that he has tarnished the image of malaysia and he has caused investors to lose confidence. now, because we heard the local media is controlled by the government, this is one way that they are using to let themselves be heard. and capture some of the global headlines as well. that they line is want him out of office. how likely is it that such a no-confidence vote will take place? >> what they need to do is let the motion be heard. it may not be possible because the speaker of the house may not allow that to happen. the first thing we have to do is get on the agenda and then they need to advise members of the coalition to cross to their
9:42 pm
site. if it doesn't go through, how else can his detractors actually let themselves be heard here? >> there are a couple of events here including the passing of the budget, that was presented this friday. we also have the transpacific partnership. opposition members may use those events to let themselves be heard that way. motions,nst such making it more difficult. rishaad: thanks very much. our kuala lumpur bureau chief joining us there. up next, counting down to the latest growth numbers in china. stay with us. ♪
9:43 pm
9:44 pm
9:45 pm
>> taiwan's ruling nationalist party has confirmed its presidential candidate switched just a few months before election. the km see party chairman is the new contender, replacing the unpopular jumps way to -- myanmar citizens living in thailand have cast early ballots in their country's general election. vote atle registered to the embassy in bangkok. it is a tiny fraction of the estimated 2 million live in thailand. the election is on november 8 and will be the biggest test so
9:46 pm
far and it's moved to our democracy and more openness. carsands of solar powered have hit the road in northern australia. the road solar challenge has been run every year since 1987. --s year, 46 entranyd entrants. -- thee ends on sunday race begins on sunday with winners crossing the finish line on wednesday. rishaad: we will give you a head start on the markets this week. biggies only about 15 minutes away. we're talking china growth. collects our take -- >> our take
9:47 pm
is probably coming in a little bit below consensus. we see certainly on the investment side and the property side. even though we see in some cities sales volume going up, but investment is not yet happening -- in other words, property developers still pulling down inventory. one sector we also have in the equation is that due to the a share market, weakness in the third quarter in particular also dragging a little bit on the financial sector. consensus that? hartmut: that seems to be the case. do we get it coming back here in the next quarter? don't think so. we have a 6.6 for both quarters. know, which should be
9:48 pm
clear, chinese potential growth numbers are coming down. 6.5 for the had a entire year. what we are seeing potentially is merely a stabilization on the fixed investment side. i guess what the chinese government is trying to do here is to counterbalance the ongoing weakness in property as long as it lasts, with infrastructure stimulus. it might not be enough to get to the numbers other houses may have in mind. rishaad: what else can they do here in terms of policy? options are not completely limited. on the monetary policy, i think we can see more stimulus. on the actual rate side, they haven't got too much room as long as inflation remains where
9:49 pm
it is, because i don't want to -- because i think they don't want to see negative real rates. soy might do more on the rrr they can cut more if they wanted to. more manufacturing policies. we should make no mistake about bringingis not about chinese growth back to 8%, it is just a sort of moderate the pace of the gradual slowdown in gdp numbers. rishaad: will that frees up --er this data comes out free up to again start looking at the fed? formut: our call remains december even though the consensus is uprising a lower probability for now. i think the fed would be well advised, head of an election
9:50 pm
year where you might know how much freedom they -- we might not know how much freedom they have, the labor market leads the inflation numbers. i think you will always find one or the other, a data point that maybe stands in the way. , i thinkverall picture it would be an opportunity lost if they didn't do the first hike in december. rishaad: where does that leave us in terms of markets rishaad: the past -- of markets? our view is that the rebound can continue, especially for asia. the assumptions are very pessimistic still. we probably hold steady on the earnings front and yet we are still down about 6% year to date with the market.
9:51 pm
if we come close to the crisis level, which we have been in the august-september period, often the pullbacks are good for about 25% performance. by that logic, we are probably only about halfway there. the same is true for global markets. eurozone, for example we like. we also like japan. rishaad: thank you, joining us from singapore. up next, sony opening its doors to showcase its latest gadgets. ♪
9:52 pm
9:53 pm
rishaad: by returning to silly has been switching his business and
9:54 pm
moving to the highest profit in 15 years. &d's rmb department -- it's r department. >> it was a very fun event. things that gathered a lot of people's eyeballs is a sort of out of body experience. it is enabled by a pair of 3-d glasses and the motion sensors, my literally, it was like soul went out of my body and i was staring at myself from different angles. it was very interesting. that is technology, the scientists says, can maybe be applied to games such as playstation in the future.
9:55 pm
i find that very interesting. rishaad: how do these inventions linkup to sony's performance? or is there a disconnect? actually, they were supposed to pack all the most difficult problems human beings poverty and other issues like that. the company is focused more profits oriented. they are doing their venture project, releasing a new smartphone app. interesting changes happening. looking to the next hour of the show.
9:56 pm
latest indications on the chinese economy. third-quarter gdp coming out in just a few minutes. what sort of picture has been painted in the world's second-biggest economy? ♪
9:57 pm
9:58 pm
9:59 pm
rishaad: it is monday, the 19th of october. you are watching "trending business." going to be live in seoul, manila this hour. asian markets nervous ahead of the latest gdp figures. it won't be easy to maintain growth around 7%. a question of confidence. malaysia's embattled leader
10:00 pm
faces criticism. he says it will be a difficult speech. and historic visit. britain rolling out the red carpet for president xi jinping. the bilateral deals set to be announced his, "huge." follow us on twitter and don't forget to include that hashtag. it is the latest growth numbers, retail sales as well. 6.9% year on year. that is a little bit better than the median estimate. basically in line with the highest forecast from economists. revised the second-quarter growth figures higher by 1/10.
10:01 pm
that takes here today to gdp growth -- take a look at the first nine months of the year, now below 7%. is a little that below the governments full-year target. go tohave a few months to get this up to the target which they have alluded is slightly flexible. , this one ist quite a mess. 5.7%. they were looking for 6%. fixed asset investment is also a miss at10.3% -- a 10.3%. just to recap we've seen here for third-quarter growth, 6.9% year on year growth for the chinese economy. rishaad: let's get the market reaction. the shanghai composite
10:02 pm
has been fluctuating in and out of positive territory ahead of the release of these numbers. we have had a bit of a spike as those numbers came through. the shanghai composite currently at 3403.%, holding last week, the index had best week in cointreau months. we have been talking about what the premier said over the weekend. president xi jinping said china is not immune to the lackluster global economy. a bit of a pickup in the early session as we get an initial reaction to these figures. had quite dollar has a bit of a spike of those numbers. it was trading lower against the greenback. you can see that big spike coming through when the data was released. 64 against the greenback.
10:03 pm
we have also been looking at commodities. lower ahead of the release of this china data. we still have all the major commodities trading lower, but oil coming back a little bit, down 1/10 of 1% at the moment. at $1174.rice holding initialstage, the market reaction has been positive. we have seen australia go into positive territory as has new zealand. the hang seng relatively flat. rishaad: thank you for that. what are the implications of this growth? tweet us your thoughts @ri shaadtv. china's 1.2 billion seasons watch streaming videos.
10:04 pm
alibaba has made an investment in true -- in c -- in streaming videos future. a third of the chinese population watches online movies, content. for the alibaba founder and billionaire jack ma, content is king. alibaba has invested in the latest "mission impossible" film, and jack ma sees the potential to connect all of his businesses and expand the user base. that is why he is moving forward with a nearly $5 billion investment to buy the remaining stake in the chinese see -- the .hinese streaming site yoku streaming video very competitive in china. it brings new eyeballs, 471 million viewers, and expands the
10:05 pm
opportunity for alibaba to sell more products across its various channels. it is clever marketing and good business sense. it is a bet on the future, and it also means that alibaba, by buying this stuff, can offer more content from around the world. u.s. shows that are extremely popular with chinese viewers but difficult for chinese content providers to get access to. this comes out alibaba spends big on transactions to diversify the business. $13 billion so far in 2015. it has been to purchases per month for the alibaba founder, working quickly to do deals at the right place. the future involves video if you believe what jack ma is buying these days. rishaad: thanks for that. we have london pulling out all the stops to who beijing --
10:06 pm
stops to woo beijing. >> they are rolling out the red carpet and this is what is going to be happening. there is going to be a 41 gun salute, then lunch with the queen at buckingham palace. in the midst of all that, prime minister david cameron will be looking at president xi jinping to give billions of pounds in new investments. some have said the amount of deals xi announces during the trip could be huge. while the u.k. is now china's second-biggest european union trading partner after germany, and has the biggest trade imbalance out of the five largest eu economies. that trade deficit reflects relatively weak exports of goods and services compared with weak imports from china.
10:07 pm
of the co-ceo's plan to split up the investment bank. the moves also include the departure of some senior fingers -- some senior figures, including the head of the iba nking and trading unit. a senior banker at the fixed trading business will also leave after a transition period. the changes mark efforts to reshape the bank after a record $2.5 billion settlement with u.s. and you pay authorities over the manipulation of interest rate benchmarks for seven years after the financial crisis -- interest rate benchmarks. seven years after the financial crisis, banks still struggling to adapt and some analysts say these banks have been too
10:08 pm
optimistic on revenues and they are not coming back. we're talking about malaysia's prime minister. he may face new pressure over a multimillion dollar funding scandal. the opposition seeking a no-confidence vote when parliament meets today. at the same time, he is ready to prepare what he calls a difficult annual budget committee will -- amid what he calls a slumping commodity prices. it is fourth last on the agenda today. not to mention, the opposition alliance has been fighting for months now. critics say najib has caused investors to lose faith and they wanted to address how funds linked and it up in his account. he maintains the support of many divisional heads in his ruling party. the budget is expected to increase handouts to the poor, a core support base. rishaad: one other story we're
10:09 pm
following up bloomberg business, is that united continental may have weighed naming interim ceo. find out why the indians ceo -- the indian prime minister was to reform a century-old bankruptcy law. details coming up. but first, adjusting expectations. the latest on china's growth numbers with jpmorgan. ♪
10:10 pm
10:11 pm
rishaad: we had chinese growth data out showing that the economy grew a little bit faster than expected in the third quarter, at least that is what the official numbers tell us. chief london economist joins us.
10:12 pm
they just came out about 11 minutes ago. when you saw them, what did you think? >> when you look at the detail, the detail is quite mixed. the ip data,t construction, and investment activity, they were weaker than expected. don't forget, in the third someer, we do expect correction in the stock market. overall, i think the challenge is still there despite the improvement in the headline number. rishaad: they say china's 51% ofs accounted for gdp from january to september. some people say it is as high as 58%, which is what they want. rishaad: from -- >> from that perspective, the services sector is growing faster than the
10:13 pm
production sector especially in the past few years. slowdown isg actually the bigger problem for the chinese economy in the near term. the service sector, which has been supporting growth, is also had some correction in the second half. rishaad: where do we go from here? some policye is issue the government can deal with the economic slowdown. if you look at the first half of this year, i would say one major concern is that a lot of traditional growth measures haven't been effective. again, if you look at today's data, investment still remains weak. if you want to stabilize growth, stabilizing investment is the key. we are expecting measures from the fiscal side and the monetary policy side. rishaad: they can cut rates, cut the rrr. haibin: we expecting one more
10:14 pm
rate cut and one more rrr cut. rishaad: you look at in the context of market volatility. ratcheting down in the reserves, haven't we? $3.5 trillion is a lot of money. it has gone down considerably. i think the government introduced the exchange rate regime before, in august. timing to introduce reform. there are also a lot of communication issues between the market and the government. volatility is cooling off, both in the stock market and the currency market, but i think the more fundamental concern is going forward. if china's growth stays stabilized and corporate profits improve, you will probably see better fundamentals. rishaad: and you'll get a nominal gdp figure. haibin: slow down and traditional sector and also a
10:15 pm
correction in the service industry. rishaad: how would we know if we are having a deep slowdown in china? we wouldn't look at the data, would we? haibin: if we look at the detailed breakdown, manufacturing slowdown is more dramatic. the service sector has been stable. if you look at the manufacturing sector, related to china's global commodities, the correction is pretty dramatic so far this year. if you look at it in a policy perspective, it is rebalancing. if you look at it from a cautious perspective, then you need to introduce more measures to stabilize the growth momentum. beijing dealing with this overhang we have in several injuries that have -- several industries that have a huge amount of overcapacity and is made worse by overhang. we see this with the factory
10:16 pm
gate prices every month. haibin: if you look at the traditional sector, cement, all these major outposts, we see this as another example. sector, but itt began to slow down. people are more optimistic because of a rebound in manufacturing and housing price. i am more cautious on that. at this time, real estate developers seem very cautious to start new projects. if the government really wants to stabilize the growth, they want -- the growth, they have to do something different in new areas like infrastructure, environment, new energy. also, consumption is critical. you need to introduce measures to support the income growth and ensure a stable growth and consumption. rishaad: of course, you have
10:17 pm
this adjustment process. you want to balance the economy. you going up the value chain, too. i'm surprised that the pain is not being reflected in this data. haibin: it is in the detailed data already. the electricity consumption numbers. you get a strong feeling that it is happening, probably more than if you look at the overall numbers. biasedrall numbers are because it included very different performance between a traditional sector and the service industry. the service side of the economy is notoriously hard to measure. haibin: it is very difficult to measure, particularly in the service sector. is a very trendy issue for economists like us. in the manufacturing sector, we
10:18 pm
have crosschecking indicators to look at. it goinghow do we see looking ahead? haibin: we expected to be stable, because after president xi makes a political amendment there is no devaluation, we think it will stay stable for the rest of the year. in the longer term, we think the currency these to be more flexible. in particular, the renminbi should look closer to the bilateral exchange rate with the u.s. dollar. instead, they should look more with the trade perspective. rishaad: thank you very much. >> time for a check of stories making headlines. at least three people killed and thousands more displaced when a tight phone -- when a typhoon
10:19 pm
hit the philippines. two people drowned. the storm weekend as it made landfall, with maximum winds down at 85 miles per hour wind gusts over 100. thousands of airline passengers were stranded in some schools have enclosed. japanese prime minister shinzo readyas unveiled a navy to protect japan on land and sea. his decision has front to criticism from china, korea, and others. it has also led to popular protests at home. he said he gives japan the ability to work more closely with the u.n. and allies. dozens of solar powered cars have hit the road in northern australia for a 3000 kilometer race across the outback. world solar challenge has been run every year since 1987. this year, 46 enterants.
10:20 pm
sunday, left darwin on with the winners expected to cross the finish line on wednesday. rishaad: up next, retail therapy. south korea takes inspiration from america, updating and expanding black friday. ♪
10:21 pm
10:22 pm
10:23 pm
♪ south korea has taken a lesson from america and is celebrating that an expanded version of black friday has brought a jump in sales. shery ahn: in more than 34,000 stores across south korea, slashed prices by as much as 80% this month. they are trying to tie shoppers back to their stores and it worked. the finance ministry is now saying that sales rose in 22 major retailers. the discounts lasted for two weeks and it promoted by the south korean government.
10:24 pm
sales and department stores have seen a jump of 24%. online malls, 29%. convenience stores rose 36% from a year earlier. it is estimated that the overall .1% to will add about this year's growth. just slashed bok its growth forecast this year. still, the government is optimistic and it is already planning another black friday for next year, which will be announced by year-end. expecting growth figures this week. what are the challenges facing the authorities in the soul -- in seoul? it is no surprise that south korea has taken a hit from slowing economies across the world. south korea is so export
10:25 pm
dependent. exports account for about half of its total market. outbreak in may also getting domestic demand. policymakers have been trying to spur consumption. they had actually implemented some temporary tax cuts on car purchases and purchases of home appliances. still, we are seeing some uptake now. 1% in expected to grow the third quarter. that would be up from 0.3% in the second quarter. year on year growth is also expected to bounce back to 2.4%. still, the bok. see some risks such as a chinese slowdown or possible fed rate hike. rishaad: shery ahn in seoul. a children's horror movie has
10:26 pm
topped north america's box office for its debut. ." is called "goosebumps it stars jack black and it took $23 million in the u.s. and canada, beating steven spielberg's first film in years, "bridge of spies." based on a book series of the same name. wars" fans excited for the next chance to visit a aleksei far, far away. the studio releases a new trailer for "star wars: the force awakens on monday .
10:27 pm
10:28 pm
i just had a horrible nightmare. my company's entire network went down, and i was home in bed, unaware. but that would never happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offline. so i can rest easy.
10:29 pm
what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business. rishaad: a look at our top stories. china's economy is expanding quicker than forecast. fiscal policy is supporting growth. gdp rising at 6.9%. keeping the 7% target within reach. it is the slowest orderly expansion since the first three months up 2009. the malaysian prime minister is facing new pressure over multimillion dollar funding
10:30 pm
scandal with the opposition seeking a no-confidence vote. he denies any wrongdoing. he delivers a budget speech, describing it as difficult. black friday sales have improved with success already underway. 21%. retailers rose department store traffic jumping 24%. online mall sales increased 30%. 36% jump in sales for convenience stores. beyond with tokyo heading into its lunch break. angie: we have seen a bit of weakness coming through for japanese stocks today. a lot of positive momentum coming through on the asian
10:31 pm
market in china following the gdp number which was better than expected. a number of stocks hitting that limit. we are seeing some of the exporters under a little bit of pressure. the exports number a little weaker. .4%,ang seng down by weakness in singapore today. we are seeing a positive day in jakarta, leading the gains. this is the picture on the shanghai composite following the release of that data. we have seen telecom stocks getting a switch out. let's have a look at some of the major stocks lifting the shanghai composite. a lot of the insurance brokerages doing quite well. china up by 1%, reports
10:32 pm
agreement.ld sign an they work very closely together in iraq. these are the stocks weighing on the shanghai composite. we are seeing pharmaceuticals down. china eastern and china shipbuilding coming under pressure. getting back to our top --ry, slightly then expected slightly better-than-expected gdp target in china, keeping the 7% target vaguely and reach. . -- in reach. >> keeping that target vaguely in reach. expectation gives it a positive
10:33 pm
tinge. we have seen services do quite well in the last quarter despite a slowdown in the stock market. manufacturing, of course, remains under pressure. gdp third quarter beat economist expectation. but it keeps it on track for the 7% number. rishaad: this is what they want? it could be in reach. >> it is all about the rebalancing story. the positive takeaway that services continues to do well, but it is not enough to fill the hole by the slowdown in exports and manufacturing. it is not that bad.
10:34 pm
7% growth. do we need policy action? if we get radical policy action, it is a guide, nothing more. >> 7% is a growth rate, a lot of economies would in the -- would envy. economy is said, the sluggish in key areas. the real estate sector does remain quite slow. government to keep their efforts chugging along, maybe more infrastructure spending. rishaad: thank you very much. jinping under
10:35 pm
pressure to help banks cope with an increasing burden of bad loans. the government is facing calls to bring back an instrument that was banned after the global corporate crisis. what are we talking about? battling -- been the total amount of that loss is the highest since 2008. the banks are struggling with this bad loan situation. loansere sending the bad to the bank managers at a deep discount. banks have been lobbying the financial regulators to allow them to restart to secure that region hoping that more investors will come into the market. , isn't: securitization
10:36 pm
that what landed us in the global crisis in the first place? >> indeed. financialaused the crisis. in china's case, the key risk is how much asset recovery we are looking at. people do not know because and china, there is no data for this. -- in china, there is no data for this. rishaad: what do they really think about this? >> some of them are pondering this. it seems they are taking very cautious steps. encouraging securitization of the performing assets. china is already the biggest abs market in asia. -- ite are talking about will take a while before we see the first transaction. rishaad: asset-backed
10:37 pm
securities. big blue bending the knee to china on cyber security, ibm giving beijing access to some of its-- as it seeks to prove products are not linked to espionage. in a statement, ibm said beijing called ahit what it backdoor to its products. biggest ipo since 1987 will see pricing for the banking and insurance divisions of japan post today. demand for investors. japan postbank and japan post insurance are five times oversubscribed, it is a three-pronged ipo and it could
10:38 pm
raise $12 billion. the quality of air in singapore has worsened today with more hotspots detected in indonesian forest fires on sunday. the index reaching 136 this morning, at the low end of the unhealthy range. the hazy conditions are expected to persist through the course of the rest of the day. things heating up in the race for the president in the philippines. 100 candidates have registered to run, it including the current vice resident -- vice president. .et's get over to manila j.p., tell us more about who is registering themselves. thing is for sure, if you are trying to run for president of the philippines, it is too late.
10:39 pm
filing closed 5:00 last friday. commission elections will begin screening them. -- amongis one thing your choices for president, one who claims to be the arc angle -- arc angel lucifer. the requirements to run for president are quite manifold -- minimal. in 2010, 99 candidates applied for presidency and only nine were allowed to run. out of those 130 candidates, who are the front-runners? are four main candidates. the ruling party candidate. up against them are the current vice president and main
10:40 pm
opposition candidate. he carries quite a bit of popular support from the masses, but also allegations of corruption. it is also worth noting that most of his family is knee-deep in politics. have a neophyte senator with a respectable record and happens to be the daughter of a famous action start. questions about her citizenship abound. we have a tough stalwart in the philippine senate and an expert in constitutional law. she is also a lung cancer survivor. rishaad: thank you, j.p.
10:41 pm
bloomberg tv philippines launched just two weeks ago. and 127.eight more elections and this time it is taiwan. step ofecedented pulling its presidential candidate with just three weeks ago. ♪
10:42 pm
10:43 pm
>> asia defense officials have warned the u.s. to keep their nose out of regional affairs. western interference in the south china sea would be the worst possible scenario. the pentagon may send warships in the area. concern has been growing as china's increasing control of the disputed islands.
10:44 pm
myanmar citizens living in thailand have cast early ballots in their countries elections. a tiny fraction of the estimated 2 million who live in thailand. the election is on november 8 them will be the biggest test of its move toward democracy and more openness. taiwan's ruling nationalist party has confirmed the president of candidate quit three months before the elections. is a new contender replacing the unpopular candidate. he initially declined the nomination. rishaad: joining us now is the head of the foreign affairs. what was wrong with your previous candidate?
10:45 pm
why did you feel the need to replace her with just three months to go? >> good morning. , therevious candidate party worried her policies had with perception that she is too pro-unification. it is away from the mainstream, it is not in accordance with policies, which is based on the 1992 consensus. the decision was made 90 days before the election, but we are able to do it using democratic means. we convened an emergency party congress so the decision was made from the bottom up. rishaad: you mentioned the 1992 consensus.
10:46 pm
nobody can agree whether there was a consensus and what it meant in the first place. is a 1992 consensus. --jing and washington agree it is one china with differing interpretations. that one china is the republic of china. rishaad: well, yes. it means there is one china, but you have different ways of looking at it. let's get back to the election. we have the former premier saying he is only good at marketing himself and manipulating the media and broke his campaign promises. that does not bode well for a
10:47 pm
presidency. eric: it does not, but the chairman made a tough decision to run for president and we believe by him running for president, he is for the betterment of the country. stable --rantee a stable relations and we will fix the mistakes the current presidency has. we will equally share the dividends. we do not understand why since he chairman chu is doing what is best for the country. rishaad: everybody will claim their own policies will be best for the country, but what did he do wrong -- what did she do wrong when it came to cross-border talks?
10:48 pm
: for the past seven years, we have seen improvement in cross strait relations. the exchange is beyond culture exchange. what the book presents, -- what the public resents, they believe the business dividends are not equally split among everyone. plan to fix has a this. based on the current platform, we hope everybody will benefit. rishaad: ok. what do you have in mind for a presidency? what is he going to do? chu represents the
10:49 pm
youth of our party, of the kmt. it means we can guarantee a stable cross strait relations and based on these relations, everybody can benefit. because we have a stable cross strait relations, we will be able to have more international access. regionale able to join integration for organizations. politics where power in accordance with responsibility. when he is elected president, he will push for a more parliamentary system. we want the premier of taiwan to be approved buyer legislators.
10:50 pm
-- by our legislators. rishaad: changing horses at such a late stage has caused some reputational damage. i guess you are in damage limitation control now. what are you doing to assuage voters concerns? voters are see some worried. there is to the polls, an eight to 10.30 with in our supporters in favor -- eight to surge in our supporters in favor of chairman chu. we are confident he can win the election come january. rishaad: i got a call from the
10:51 pm
chinese policy -- china policy institute, they say the problem with the kmt is they lost a notion of what the public actually wants there in taiwan. how do you get that back? is it some sort of me a cold but? -- mea culpa? eric: chairman chu represents the youth of the party. he will bring some reform that people find necessary for the kmt. chu is the eric stronger candidate. rishaad: thank you very much for that. joining us from taipei.
10:52 pm
why india's prime minister is going back to the future to breathe life back into his stalling agenda. we will be live in mumbai after this break. ♪
10:53 pm
10:54 pm
rishaad: getting down to the open and india, 50 minutes away. the prime minister betting on a century of bankruptcy law to pull his delayed reform agenda back on track. modi pushing such an old law? it all comes down to a case of simple mathematics. they finally have a new bankruptcy court.
10:55 pm
liquidation in stress cases. a committee plans to submit a recommendation for a bill that maybe they will join the parliament session. why is that? indian companies get back $.10 for every dollar. $.84 that company in the u.s. managed to make back. it is something that had been cleared in 2013 as part of the company. remain unresolved. ast repayment as well bankruptcy.
10:56 pm
rishaad: thank you. live with speaking jamie dimon. catch that interview on bloomberg go. ♪
10:57 pm
10:58 pm
10:59 pm
rishaad: middle of the asian trading day. this is "asia edge." look at our top stories, china's economy beating expectations. 7% target still within reach. asia stocks barely changed on the news, the slowest pace of growth since 2009. the president makes his first
11:00 pm
--it to the u.k., the deals to the u.k. candidates are registering to run for the president of the philippines. we will be live in manila. the value of investment in china and india are rivaling those in california's tech heartland. warsts for the next star are about to go on sale, two months before the movie opens. juliette: we are seeing a better-than-expected gdp number coming from china. weaknesseen some coming through in korea. the


info Stream Only

Uploaded by TV Archive on